Consumer confidence bounces

Consumer confidence has jumped 10.1 per cent, the biggest gain since the ANZ-Roy Morgan Australian Consumer Confidence survey shifted to a weekly basis in 2008. All the subcomponent rose, with the exception of a small decline in ‘future economic conditions .’

‘Current economic conditions’ was up by a massive 24.6 per cent. Despite this gain, this subcomponent is still 50 per cent below its level six weeks back.

‘Current financial conditions’ gained 8.8 per cent, while future financial conditions rose 11.4 per cent.

‘Time to buy a major household item’ gained 17.5 per cent compared to a drop of 23.8 per cent previously. The four-week moving average for ‘inflation expectations’ was stable at 4.1 per cent. The weekly reading dipped to 4.1 per cent from 4.3 per cent.

“The 10.1 per cent jump in confidence recorded in this survey was the biggest since it became a weekly survey in 2008,” ANZ Head of Australian Economics David Plank said.

“We think it represents a strong endorsement of the Government’s massive wage subsidy package, announced on March 30. Better

news about the flattening of the ‘pandemic curve’ may also have contributed.”

“The bounce needs to be kept in perspective – confidence is still around the lows seen in 1990 during the last recession. So consumers can hardly be said to be cheerful or ready to spend. But it is nice to be commenting on some better news.”

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